You have just completed a $18,000 feasibility study for a new coffee shop in some retail space you own. You bought the space two years ago for $100,000, and if you sold it today, you would net $114,000 after taxes. Outfitting the space for a coffee shop would require a capital expenditure of $25,000 plus an initial investment of $5,200 in inventory. What is the correct initial cash flow for your analysis of the coffee shop opportunity? , eve Identify the relevant incremental cash flows below: (Select all the choices that apply.) -2.42 bur c A. Feasibility study for the new coffee shop. B. Capital expenditure to outfit the space. your C. Price you paid for the space two years ago. 18 D. Amount you would net after taxes should you sell the space today. E. Initial investment in inventory. og Calculate the initial cash flow below: (Select from the drop-down menus and round to the nearest dollar) $ -8 1 2 $ P $ 3 $ r 4/ 4 Free Cash Flow Char bunt y off. RUNNI t your
You have just completed a $18,000 feasibility study for a new coffee shop in some retail space you own. You bought the space two years ago for $100,000, and if you sold it today, you would net $114,000 after taxes. Outfitting the space for a coffee shop would require a capital expenditure of $25,000 plus an initial investment of $5,200 in inventory. What is the correct initial cash flow for your analysis of the coffee shop opportunity? , eve Identify the relevant incremental cash flows below: (Select all the choices that apply.) -2.42 bur c A. Feasibility study for the new coffee shop. B. Capital expenditure to outfit the space. your C. Price you paid for the space two years ago. 18 D. Amount you would net after taxes should you sell the space today. E. Initial investment in inventory. og Calculate the initial cash flow below: (Select from the drop-down menus and round to the nearest dollar) $ -8 1 2 $ P $ 3 $ r 4/ 4 Free Cash Flow Char bunt y off. RUNNI t your
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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18. You have just completed a $18,000 feasibility study for a new coffee shop in some retail space you own. You bought the space two years ago for $100,000, and if you sold it today, you would net $114,000 after taxes. Outfitting the space for a coffee shop would require a capital expenditure of $25,000 plus an initial investment of $5,200 in inventory. What is the correct initial cash flow for your analysis of the coffee shop opportunity?
**round to the nearest dollar**
Transcribed Image Text:You have just completed a $18,000 feasibility study for a new coffee shop in some retail space you own. You bought the space two years ago for $100,000, and if
Eat you sold it today, you would net $114,000 after taxes. Outfitting the space for a coffee shop would require a capital expenditure of $25,000 plus an initial investment
of $5,200 in inventory. What is the correct initial cash flow for your analysis of the coffee shop opportunity?
/20
REED
Pha Identify the relevant incremental cash flows below: (Select all the choices that apply.)
for 5/
A. Feasibility study for the new coffee shop.
B. Capital expenditure to outfit the space.
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C. Price you paid for the space two years ago.
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D. Amount you would net after taxes should you sell the space today.
E. Initial investment in inventory.
ter log
Calculate the initial cash flow below: (Select from the drop-down menus and round to the nearest dollar)
$
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2
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$
3
$
st for 4
4 Free Cash Flow
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